Comparative Advantage Differs from Absolute Advantage in That the Former

question 21

Multiple Choice

Comparative advantage differs from absolute advantage in that the former ________, whereas the latter ________.

• A)holds that countries should specialize their production; does not
• B)holds that trade should be kept as nearly in balance as possible; says countries should seek a favorable balance of trade
• C)bases trade on natural advantages; bases trade on acquired advantage
• D)states that there is a basis of trade even if one country can produce everything more efficiently than another country; does not deal with this issue

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Definitions:

Rosalie Rayner

An American psychologist, best known for her work with John B. Watson and the Little Albert experiment on conditioned emotional responses.

Psychological Laboratory

A controlled environment where experiments are conducted to study psychological processes, often using scientific methods to understand behavior and mental functions.

Wundt

A psychologist often referred to as the father of experimental psychology, known for establishing the first psychology laboratory.

Plato

An ancient Greek philosopher, a student of Socrates, whose work laid the foundations for much of Western philosophy and science.